From the end of June to the beginning of July, the polyester market went on a short-term “roller coaster”. The price of PTA soared, ended at the daily limit, and then continued to fall. It was very exciting!
Price fluctuations in the polyester market often affect the industrial chain, especially downstream weaving, which is of great concern to the industry. It is said that one move affects the whole body. After this industry fluctuation, what is the situation of the downstream weaving market? Have orders increased? What will the overall situation be like in the second half of the year?
1. The weaving market has entered the off-season
Starting from April this year, the overall downstream weaving market began to decline, and gray fabrics The delivery speed is slow and the fabric merchants have insufficient orders. The recent wave of rising raw material prices has not boosted the downstream weaving market. According to statistics, weaving manufacturers and traders currently have execution orders on hand, and the quantity is acceptable, and most of them can last until September. After this wave of raw material fluctuations, weaving manufacturers’ gray fabric shipments and traders’ orders have not been driven, and there are no obvious signs of improvement.
Mr. Shen, a weaving company that specializes in pongee, nylon, four-way elastic and other products, said: “The overall market situation this year is average, and our order volume is also average. We mainly rely on old customers to get goods. It’s better if the volume of old customers is large, but it’s bad if the volume is small.”
A business owner in Wujiang area Manager Wang of a weaving company that sells imitation silk products reported that the supply of matte SPH products exceeded demand in March this year. After the Qingming Festival, the market began to decline. Now this fabric has reached a point where no one is purchasing it.
2. The profits of downstream companies are diluted
The rise and fall of raw material prices will directly affect profits. The textile market environment is sluggish, and affected by rising raw material prices, the profit of each loom has dropped significantly.
Mr. Wu of a weaving company that specializes in satin production gave feedback: “Now the profit is not high. A loom can produce 230 meters a day, and the profit per meter of cloth is less than 0.2 yuan. The profit of the loom is only 20-40 yuan a day.”
Manager Wang also said: “The current profit is very low, and the quotation of 75D chiffon dropped from 3.30 yuan/meter last month to 3.20 Yuan/meter, but the raw materials are rising. At present, these conventional varieties are in a state of capital preservation, mostly to maintain old customers.” According to the statistics of samples monitored by China Silk City Network, the price of 75D chiffon gray fabric has plummeted since February this year.
Weaving companies have been affected by rising raw material prices and market downturns. It is difficult for gray fabric prices to rise, and profits have been reduced. dilution. The life of trading companies is also unsatisfactory, and profits are also declining. Mr. Li from a trading company revealed that the current profit on orders is about 15%, and it could reach 20% last year. Payments are also slow, and many orders are in arrears for more than half a year.
3. As the off-season approaches, there are still companies stocking up
Fluctuations in raw material prices will, to a certain extent, bring Some changes in the market. The price of raw materials has increased by nearly a thousand yuan compared with some time ago. Recently, I heard that some companies in the market have begun to stock up, and traders have begun to purchase and place orders for conventional chemical fiber gray fabrics, although this phenomenon is not yet common.
A weaving factory in Wujiang has hundreds of water-jet looms. The machines are currently in full operation, producing some conventional Variety, but the person in charge of the company, Mr. Niu, still purchases polyester taffeta, pongee and other gray fabrics from some weaving factories for stocking. Mr. Niu revealed that at present, in addition to the inventory produced in his own factory and the gray fabric purchased from outside, there are a total of 7 warehouses with about 4 million meters of goods. “The price of gray fabrics is quite low now. If I buy some goods, even if I can’t sell them all now, I can still sell them in the peak season of September and October. This kind of conventional product has a huge demand and can always be sold.”
In addition, in addition to the normal cycle of buying gray fabrics every day, a spot enterprise mainly engaged in nylon spinning has recently had a weaving factory reduce prices to deal with inventory, so it has stocked up to millions of meters more. The person in charge, Mr. Feng, said: “We cycle through purchasing goods every day. If the price of gray fabrics is low, we will buy more. Whichever variety sells better, we will buy more, ensuring that each variety has 100,000 meters of inventory.”
In recent years, stocking up has become a routine operation for downstream companies. Whether it is a weaving company or a trader, they will stock up in batches, but the quantity of stock will be based on factors such as market conditions, their own financial strength, and the popularity of the variety.
4. There are different opinions on the market outlook
Everyone said that this wave of polyester price surge is a hype, and the facts prove that it is indeed Hype, without the support of downstream orders, it is difficult for polyester prices and production and sales to make big progress! In the final analysis, the downstream weaving industry is in a sluggish market, gray fabric shipments are slow and in small quantities, and gray fabric inventory pressure is high. Nowadays, weaving costs are still high due to the impact of raw material prices, gray fabric inventories are rising, and market orders have not improved. All these have given textile people a lot of blows. Therefore, there are different opinions on the market outlook, whether they are bearish or optimistic.My own opinion.
Mr. Wu said that the current gray fabric inventory ranges from 100,000 to 300,000 meters for each variety, and some varieties have already More than 300,000 meters, more than half a year has passed, and the market is still tepid. I really can’t tell the current market. I don’t think there will be a peak season in the near future.
Mr. Feng believes that in previous years, September and October in the second half of the year are the times with the largest number of orders. It is expected that this year will be the same. It will always be better than the first half of the year, but it is not It will be particularly prosperous, I can only say that it is getting better.
No matter what the market outlook is like, confidence is still indispensable. The most important thing is to adjust your mentality and welcome the second half of the year with positive energy. The editor will always silently support millions of textile people from behind and accompany everyone to face the ever-changing textile market! </p
